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Before the
Federal Communications Commission
Washington, DC 20554
)
In the Matter of ) File Nos. EB-
01-IH-0339
) EB-01-IH-
0453
) NAL/Acct.
No.200132080059
) FRN Nos. 0004-3051-
24
SBC Communications, Inc. ) 0004-
3335-71
) 0005-1937-
01
ORDER
Adopted: May 22, 2002 Released: May 28,
2002
By the Commission:
1. The Commission has been conducting two investigations
into potential violations by SBC Communications, Inc. (``SBC'')
of sections 251 and 271 of the Communications Act of 1934, as
amended (``the Act''),1 sections 1.17 and 1.65 of the
Commission's Rules,2 and the requirements of the SBC/SNET Consent
Decree.3 These investigations focused on competitors' access to
SBC's operations support systems (``OSS'') and information SBC
provided to the Commission as part of its section 271
applications.4 The Commission and SBC have negotiated the terms
of a Consent Decree that will terminate these investigations. A
copy of the Consent Decree is attached hereto and is incorporated
by reference.
2. Based on the record before us, and in the absence of
material new evidence relating to this matter, we conclude that
there are no substantial and material questions of fact as to
whether SBC possesses the basic qualifications, including its
character qualifications, to hold or obtain any FCC licenses or
authorizations.
3. We have reviewed the terms of the Consent Decree and
evaluated the facts before us. We believe that the public
interest would be served by approving the Consent Decree.
4. Accordingly, IT IS ORDERED, pursuant to sections 4(i),
4(j), and 503(b) of the Communications Act of 1934, as amended,
47 U.S.C. §§ 154(i), 154(j), and 503(b), that the Consent Decree,
incorporated by reference in and attached to this order, is
hereby ADOPTED.
5. IT IS FURTHER ORDERED that the Secretary SHALL SIGN the
Consent Decree on behalf of the Commission.
6. IT IS FURTHER ORDERED that the above captioned
investigations ARE TERMINATED.
FEDERAL COMMUNICATIONS COMMISSION
Marlene H. Dortch
Secretary
Before the
Federal Communications Commission
Washington, DC 20554
)
In the Matter of ) File No. EB-
01-IH-0339
) EB-01-IH-
0453
) NAL/Acct.
No.200132080059
) FRN Nos. 0004-3051-
24
SBC Communications Inc. ) 0004-
3335-71
) 0005-1937-
01
CONSENT DECREE
I. INTRODUCTION
1. The Federal Communications Commission (the
``Commission'' or the ``FCC'') and SBC Telecommunications, Inc.,5
(``SBC'' or the ``Company'') hereby enter into this Consent
Decree for the purpose of terminating two investigations by the
Commission into whether SBC may have violated sections 251 and
271 of the Communications Act of 1934, as amended (``the Act''),6
sections 1.17 and 1.65 of the Commission's Rules,7 and the terms
of the June 1999 SBC/SNET Consent Decree.8 The investigations
focused on the circumstances surrounding SBC's submission to the
Commission of inaccurate factual information in section 271
application affidavits. Specifically, these affidavits contained
inaccurate information related to competing carriers' allegations
concerning purported problems obtaining access to loop
qualification information in Texas, Kansas, Oklahoma, Arkansas,
and Missouri, and electronic access to SBC's Loop Maintenance
Operations System (``LMOS'').9
II. BACKGROUND
2. Section 271(d)(1) of the Act requires a Bell Operating
Company (``BOC'') to file an application with the Commission in
order to receive authorization to provide in-region interLATA
service.10 Applicants must comply with the requirements of
section 271 prior to receiving such approval. Thus, inter alia,
an applicant must provide requesting carriers nondiscriminatory
access to its operations support systems (``OSS'')11 in order to
comply with section 271(c)(2)(B)(ii) of the Act and obtain
section 271 authorization.12 Once the applicant has received
section 271 authority, it must continue to meet the conditions of
Commission authorization, including providing nondiscriminatory
access to its OSS.13 In this context, the Commission, in
addition to its general enforcement authority,14 has authority to
suspend or revoke its approval of a section 271 application
should the BOC at any time cease to meet a condition of the
approval.15
3. Applicants seeking authority to provide in-region
interLATA service submit affidavits and other evidence as part of
their applications to demonstrate that they meet the requirements
of section 271. Section 1.17 of the Commission's Rules states
that no applicant shall make any misrepresentation or willful
material omission in any application submitted to the
Commission.16 Section 1.65 of the Commission's Rules requires
applicants to furnish ``additional or corrected information''
whenever information furnished in a pending application is no
longer substantially accurate and complete in all significant
respects or when there has been a substantial change as to any
other matter that may be of decisional significance in a
Commission proceeding involving that application.17 Applicants
that violate these rules are subject to the Commission's
enforcement authority.18
4. Pursuant to these rules, the Enforcement Bureau
conducted two investigations in relation to SBC's Texas,
Kansas/Oklahoma and Missouri section 271 applications. The first
investigation arose from SBC's representations in the
Kansas/Oklahoma proceeding concerning competing carriers' ability
to access loop qualification information from SBC, which raised
questions about potential violations of sections 251 and 271 of
the Act. It also involved the timeliness of disclosures the
company made to the Commission subsequent to the Commission's
approval of the section 271 application, SBC's implementation of
and compliance with the 1999 SBC/SNET Consent Decree, and the
veracity of an affidavit by an SBC employee that SBC submitted in
connection with the investigation.19 Following the Enforcement
Bureau's investigation of these issues, the Commission issued a
Notice of Apparent Liability and Order on October 16, 2001, in
which the Commission proposed a forfeiture of $2.52 million for
SBC's apparent violation of sections 1.17 and 1.65 of the
Commission's Rules and of the training requirements of the 1999
SBC/SNET Consent Decree.20 Additionally, the Commission required
SBC to report to the Commission, through an independent audit, on
the success of its efforts to ensure compliance with section 1.65
of the Commission's Rules and the terms of the SBC/SNET Consent
Decree. SBC submitted its response to the NAL on November 21,
2001.21
5. The Enforcement Bureau's second investigation arose
from a competing carrier's complaint about difficulties obtaining
electronic access to SBC's LMOS system.22 This investigation, as
did the first, concerned SBC's compliance with sections 251 and
271 of the Act, the veracity of affidavits SBC submitted in
connection with section 271 applications, the timeliness of
disclosures the company made in relation to the Commission's
approval of those applications, and questions about SBC's
implementation of and compliance with the SBC/SNET Consent
Decree.23
III. DEFINITIONS
6. For purposes of this Consent Decree and the attached
Compliance Plan, the following definitions shall apply.
(a) ``FCC'' or the ``Commission'' means the
Federal Communications Commission and all of its bureaus
and offices.
(b) ``SBC'' or the ``Company'' means SBC Communications
Inc. and its wholly owned subsidiaries, including, but
not limited to the following: Southwestern Bell
Telephone, L.P., Pacific Bell, Nevada Bell, Illinois
Bell, Indiana Bell, Michigan Bell, Ohio Bell, Wisconsin
Bell, SNET, Southwestern Bell Communications Services,
Inc., SBC Advanced Solutions, Inc. (ASI), Ameritech
Advanced Data Services (AADS), SBC-MSI and SBC long
distance subsidiaries. It will not apply to Cingular,
or any other company that is not wholly owned and
controlled by SBC, including SBC's foreign affiliates.
(c) ``In-region state'' is defined at 47 U.S.C. §
271(i)(1), and for SBC includes Texas, Kansas, Oklahoma,
Missouri, Arkansas, Illinois, Indiana, Michigan, Ohio,
Wisconsin, Nevada, and California.
(d) ``Parties'' means SBC and the FCC.
(e) ``SBC FCC Representatives'' means SBC employees
authorized by SBC to represent SBC in ``Contacts with
the Commission,'' as that term is defined in
subparagraph (h) of this paragraph. SBC will provide
the Chief of the Enforcement Bureau a list of SBC
employees so authorized within 10 calendar days after
the Commission Order adopting this Consent Decree
becomes final, and will provide the Chief of the
Enforcement Bureau an updated list on a monthly basis.
This updated list will identify any SBC employees who
have been added or removed from the previously submitted
list. This list will include: (1) the Chairman and CEO
of SBC and the SBC Officers who report directly to the
Chairman and CEO; (2) staff assigned to the Federal
Regulatory Group located in Washington, D.C. and the SBC
Officer to whom this Group reports; (3) attorneys
assigned to the FCC Legal Group located in Washington,
D.C. and the SBC Legal Officer to whom this Group
reports; (4) attorneys assigned to the SBC 271 Legal
Team and the SBC Legal Officer to whom this Team
reports; (5) all other SBC employees who have been
authorized to make ``contacts'' with the FCC by one of
the SBC FCC Representatives listed above; and (6) SBC
employees who sign and submit sworn affidavits or
statements on behalf of SBC to the FCC after the
effective date of this Consent Decree.
(f) ``SBC Compliance Guidelines'' means the Compliance
Primer used by SBC to provide training to SBC FCC
Representatives on the requirements of the SBC/SNET
Consent Decree, this Consent Decree, sections 1.17 and
1.65 of the Commission's Rules, and any other FCC rule
pertaining to contacts with and representations to the
FCC.
(g) ``Compliance Training'' means training SBC provides to
SBC FCC Representatives on the requirements of the
SBC/SNET Consent Decree, this Consent Decree, sections
1.17 and 1.65 of the Commission's Rules, and any other
FCC rules pertaining to contacts with and
representations to the FCC.
(h) ``Contacts with the Commission'' is defined as an in-
person meeting with an FCC Commissioner or FCC staff, or
participation in a telephone or conference call with an
FCC Commissioner or FCC staff that has been scheduled,
initiated, coordinated or authorized by an SBC FCC
Representative for purposes of discussing substantive
matters concerning a pending matter relating to SBC, or
the submission of a written statement, including an
affidavit or sworn statement, to an FCC Commissioner,
FCC staff, or the FCC.
(i) ``Order'' or ``Adopting Order'' means an order of the
FCC adopting this Consent Decree without change,
addition, or modification.
(j) ``Final Order'' means an order that is no longer
subject to administrative or judicial reconsideration,
review, appeal, or stay.
(k) ``OSS'' or ``operations support systems'' means systems
used by SBC to perform the functions of pre-ordering,
ordering, provisioning, maintenance and repair, and
billing as defined in the Implementation of the Local
Competition Provisions of the Telecommunications Act of
1996, Third Report and Order, CC Docket No. 96-98, 15
FCC Rcd 3696 (1999).
(l) ``SBC/SNET Consent Decree'' refers to the agreement
between the Commission and SBC, including the Compliance
Plan requirements contained therein, resolving the
informal investigation by the Commission into potential
violations by SBC of sections 271 and 272 of the
Communications Act and section 1.65 of the Commission's
rules, and potentially inaccurate statements made by SBC
employees, all in relation to SBC's application for
transfer of various authorizations from Southern New
England Telephone Company to SBC.24
(m) ``Investigations'' or ``investigation'' means,
collectively or singularly, the investigations commenced
by letters of inquiry the Enforcement Bureau issued to
SBC on May 4, 2001 concerning loop qualification and/or
on July 26, 2001 concerning LMOS, and information
learned from interviews, documents, informal complaints,
ex partes, or other information received by the
Commission related to the issues addressed therein
(excluding information received in, or in connection
with, any formal complaint proceeding) prior to the date
of the Adoption Order.
(n) ``Effective Date'' means the date on which the
Commission adopts the Adopting Order.
IV. AGREEMENT
7. SBC and the Commission agree that this Consent Decree
does not constitute either an adjudication of the merits, or any
factual or legal finding or determination of noncompliance by SBC
with the requirements of the Act, as amended, with the
Commission's Rules, or with the requirements of the SBC/SNET
Consent Decree. The Parties agree that this Consent Decree is
for settlement purposes only and that by agreeing to this Consent
Decree, the Company does not admit any noncompliance, violation,
or liability associated with or arising from any alleged actions
or failures, including any problems or failures described in the
letters of inquiry or the NAL, or in any informal complaints, ex
partes, or other information the Commission received on or before
the Effective Date of this Consent Decree.
8. In express reliance on the covenants and
representations contained herein, the Commission agrees to
terminate the Investigations and cancel the NAL, except for the
requirements in paragraphs 64, 89, 97 and 98 regarding the
independent audit.25
9. The Parties agree and acknowledge that this Consent
Decree shall constitute a final settlement between SBC and the
Commission of the Investigations. In consideration for the
termination of these Investigations in accordance with the terms
of this Consent Decree, SBC agrees to the terms, conditions, and
procedures contained herein and in the accompanying and
incorporated Compliance Plan. To ensure SBC's future compliance
with the Act and our rules, SBC agrees, effective thirty days
after the release of the Order, to implement the specific
measures contained in the attached Compliance Plan. SBC also
agrees that the definitions of ``SBC FCC Representatives'' and
``Contacts with the Commission'' contained in paragraph 6 of this
Consent Decree shall apply to the terms ``SBC's FCC
representatives'' and ``FCC Contacts'' in the SBC Compliance Plan
Regarding FCC Rules and Regulations attached to the SBC/SNET
Consent Decree.
10. SBC has performed an internal investigation
concerning an SBC employee's representations to the Enforcement
Bureau related to its loop qualification investigation and,
because of the unique circumstances of these representations
(including the fact that there were no witnesses to the specific
facts upon which the representations in question are based), SBC
has no basis upon which to determine whether each of the facts
contained in those representations are or are not accurate. SBC
confirms that it is SBC corporate policy that if, after an
internal investigation and based upon a preponderance of the
evidence, SBC concludes that one of its employees has
intentionally made any misrepresentation, or engaged in any
willful material omission in any submission to the Commission,
either orally or in writing, SBC will take appropriate
disciplinary action, up to and including dismissal.
11. SBC will make a voluntary contribution to the United
States Treasury in the amount of $3.6 million dollars
($3,600,000) within 10 calendar days after the Commission Order
adopting this Consent Decree becomes final. SBC must make this
payment by check, wire transfer or money order drawn to the order
of the Federal Communications Commission, and the check, wire
transfer or money order should refer to ``NAL Acct. No.
200132080059'' and ``FRN Nos. 0004-3051-24, 0004-3335-71, and
0005-1937-01.'' If SBC makes this payment by check or money
order, it must mail the check or money order to: Forfeiture
Collection Section, Finance Branch, Federal Communications
Commission, P.O. Box 73482, Chicago, Illinois, 60673-7482. If
SBC makes this payment by wire transfer, it must wire such
payment in accordance with Commission procedures for wire
transfers.
12. The Commission agrees that, in the absence of
material new evidence related to these matters, it will not use
the facts developed in the Investigations through the date of
this Consent Decree, or the existence of this Consent Decree, to
institute, on its own motion, any new proceedings, formal or
informal, or to take any actions on its own motion against the
Company concerning the matters that were the subject of the
Investigations. The Commission also agrees that, in the absence
of material new evidence related to these matters, it will not
use the facts the Bureau developed in the Investigations to
institute on its own motion any proceeding, formal or informal,
or take any action against SBC with respect to its basic
qualifications, including its character qualifications, to be a
Commission licensee. Consistent with the foregoing, nothing in
this Consent Decree limits the Commission's authority to consider
and adjudicate any complaint that may be filed pursuant to
sections 208 or 271 of the Communications Act, as amended,26 and
to take any action in response to such complaint.
13. The Company waives any and all rights it may have to
seek administrative or judicial reconsideration, review, appeal
or stay, or to otherwise challenge or contest the validity of
this Consent Decree and the Order adopting this Consent Decree,
provided the Order adopts the Consent Decree without change,
addition, or modification.
14. The Company's decision to enter into this Consent
Decree is expressly contingent upon issuance of an Order that is
consistent with this Consent Decree, and which adopts the Consent
Decree without change, addition, or modification.
15. In the event that this Consent Decree is rendered
invalid by any court of competent jurisdiction, it shall become
null and void and may not be used in any manner in any legal
proceeding.
16. If the Commission, or the United States on behalf of
the Commission, brings a judicial action to enforce the terms of
the Adopting Order, neither SBC nor the Commission will contest
the validity of the Consent Decree or Adopting Order, and the
Company will waive any statutory right to a trial de novo.
17. Any violation of the Consent Decree or the Adopting
Order will constitute a separate violation of a Commission order,
entitling the Commission to exercise any rights and remedies
attendant to the enforcement of a Commission order.
18. The Parties agree that the terms of the accompanying
Compliance Plan are incorporated into this Consent Decree. The
parties further agree that Part II of the accompanying Compliance
Plan will remain in effect only until SBC has received final
authorization for all of its section 271 applications for its
twelve in-region states. For the purposes of this Consent
Decree, final authorization will mean once a Commission grant of
an application is no longer subject to reconsideration by the
Commission or to review by any court.
19. The Parties agree that Part I of the accompanying
Compliance Plan, and the SBC/SNET Consent Decree shall remain in
effect until May 1, 2007, unless the Commission votes to extend
either of them.
20. This Consent Decree shall terminate at such time as
Parts I and II of the accompanying Compliance Plan have both
terminated as set forth in paragraphs 18 and 19, above.
21. The Parties also agree that if any provision of the
Consent Decree conflicts with any subsequent rule or order
adopted by the Commission (except an order specifically intended
to revise the terms of this Consent Decree to which SBC does not
consent) that provision will be superseded by such Commission
rule or order.
22. This Consent Decree may be signed in counterparts.
FEDERAL COMMUNICATIONS COMMISSION
By: __________________________________
Marlene H. Dortch
Secretary
SBC Telecommunications, Inc.
By: ___________________________________
Priscilla Hill-Ardoin
Senior Vice-President-FCC COMPLIANCE PLAN27
I. Contacts with and representations to the FCC.
I.A. SBC FCC Representatives:
I.A.1. SBC will train and provide materials to its
SBC FCC Representatives concerning the requirements of
this Consent Decree, the SBC/SNET Consent Decree, and
certain Commission rules. Specifically, SBC will:
I.A.1)a. train its SBC FCC Representatives in
SBC's obligations regarding contacts with and
representations to the FCC under the terms of the
SBC/SNET Consent Decree, this Consent Decree, and
sections 1.17 and 1.65 of the Commission's Rules;
and
I.A.1)b. provide each of its FCC Representatives
with the SBC Compliance Guidelines setting forth
SBC's obligations regarding contacts with and
representations to the FCC under the terms of the
SBC/SNET Consent Decree, this Consent Decree, and
sections 1.17 and 1.65 of the Commission's Rules.
I.A.2. SBC will provide the materials and training
described in I.A.1., above:
I.A.2)a. to all SBC FCC Representatives each
year;
I.A.2)b. except in the case of an employee who
signs and submits a section 271 affidavit on
behalf of SBC, to each employee SBC designates as
an SBC FCC Representative by including such
employee on SBC's list of authorized SBC FCC
Representatives before such employee participates
in a contact with the FCC; and
I.A.2)c. to each SBC employee who signs and
submits an FCC affidavit on behalf of SBC no later
than five business days after the date on which
such employee is assigned responsibility to
prepare his or her initial affidavit, or before
the date the employee signs such affidavit,
whichever occurs first.
I.A.3. SBC will maintain written certification from
each employee in I.A.2. certifying that he or she has
received the training and understands the obligations
regarding contacts with and representations to the FCC
under the terms of the SBC/SNET Consent Decree, this
Consent Decree, and section 1.17 and 1.65 of the
Commission's Rules, and reviewed and understands the
SBC Compliance Guidelines.
I.B. Contacts with the FCC: SBC will take reasonable
steps to ensure that only an SBC FCC Representative
schedules or participates in a Contact with the Commission.
In particular, at least once per calendar year, SBC will
notify its management employees (i.e., non-bargained for
employees) via e-mail that they may not contact the FCC, an
FCC Commissioner, or FCC staff for purposes of discussing
substantive matters concerning a pending matter relating to
SBC, unless they are authorized by SBC to engage in such
contact and have received Compliance Training, as defined in
paragraph 6(g) of the Consent Decree.
I.C. Disciplinary Action: If, after an internal
investigation and based upon a preponderance of the
evidence, SBC concludes that one of its employees has
intentionally made any misrepresentation, or engaged in any
willful material omission in any submission to the
Commission, either orally or in writing, SBC will take
appropriate disciplinary action, up to and including
dismissal.
I.D. Compliance Tracking: SBC will assign a manager in
its Federal Regulatory Group the responsibility for tracking
SBC's compliance with the foregoing requirements, including
the maintenance of records documenting such compliance. SBC
will make copies of relevant records available to the FCC,
upon written request, within ten days of such request,
unless negotiated otherwise.
II. Section 271 Applications
II.A. Affiant Training: SBC will inform each affiant
who files an affidavit with the FCC in support of any
section 271 application of SBC's obligations under section
1.17 and 1.65 of the Commission's Rules no later than five
business days after the affiant is assigned the
responsibility to prepare his or her initial section 271
affidavit, or before the date the employee signs such
affidavit, whichever occurs first.
II.B. Affidavit Verification: SBC will require that,
prior to signing an affidavit that is filed with the
Commission in support of a section 271 application, each
affiant verify to a reasonable certainty, in writing, that
the factual assertions included in the affidavit are
accurate and complete in all significant respects. Such
verification must be based on either the affiant's own
personal knowledge, or the personal knowledge of one or more
SBC employees whom the affiant reasonably believes are
knowledgeable and reliable. If an SBC employee verifies
factual information in an affidavit filed with the
Commission in support of a section 271 application based on
personal knowledge, then that SBC employee will identify the
factual assertions about which he or she has personal
knowledge and verify to a reasonable certainty, in writing,
that the factual assertion is accurate and complete in all
significant respects.
II.C. SBC Employees Verifying Factual Information Filed
with the Commission: SBC will provide all employees
verifying factual information in an affidavit that is filed
with the Commission in support of a section 271 application
with written instructions summarizing that employee's
responsibility under sections 1.17 and 1.65 of the
Commission's Rules.
II.D. List of Employees Verifying Information in
Affidavits: SBC will maintain a list of those employees
who, after the effective date of this Consent Decree, verify
the factual assertions contained in an affidavit, or any
portion thereof, filed with the FCC in support of a section
271 application. The list shall specify which affidavit(s)
the employee verified and, if an employee verified only part
of an affidavit, which paragraphs of the affidavit the
employee verified.
II.E. Affidavit Statement: SBC will require that
affidavits signed by an SBC employee that are filed with the
FCC in support of a section 271 application include a
statement that the affiant has:
II.E.1. received the training SBC is obligated to
provide to all SBC FCC Representatives;
II.E.2. reviewed and understands the SBC Compliance
Guidelines;
II.E.3. signed an acknowledgement of his or her
training and review and understanding of the
Guidelines; and
II.E.4. complied with the requirements of the SBC
Compliance Guidelines.
II.F. Compliance Tracking: The Manager referenced in
Section I will have responsibility for tracking SBC's
compliance with the foregoing requirements, including
maintaining records documenting such requirements. SBC will
make copies of the relevant records available to the FCC,
upon written request, within ten days of such request,
unless negotiated otherwise.
III. Independent Audit
III.A. An independent auditor shall perform a compliance
attestation of the requirements of this Compliance Plan for
the period June 1, 2002 through May 31, 2003 in accordance
with the standards promulgated by the American Institute of
Certified Public Accountants (``AICPA''). The independent
auditor shall file its audit report with the Chief,
Enforcement Bureau no later than 90 days after the end of
the audit period. In particular, the independent auditor
shall perform an examination engagement resulting in a
positive opinion (with all exceptions noted). The
following terms and conditions shall apply to the conduct of
the audit:
III.A.1. The independent auditor shall be Ernst &
Young, unless otherwise agreed by SBC and the
Enforcement Bureau;
III.A.2. The independent auditor shall submit its
preliminary audit program to the Enforcement Bureau and
SBC for review and comment before starting any work.
The final audit program shall be determined by the
independent auditor based upon AICPA standards, taking
into consideration the comments of the Enforcement
Bureau and SBC; and
III.A.3. The independent auditor shall make available
to the Enforcement Bureau upon request its working
papers and supporting documentation for a period of two
years after completing the audit.
_________________________
1 47 U.S.C. §§ 251, 271.
2 47 C.F.R. §§ 1.17, 1.65.
3 See SBC Communications, Inc., Order, 14 FCC Rcd 12741 (1999)
(``SBC/SNET Consent Decree'').
4 See Letter from David H. Solomon, Chief, Enforcement Bureau,
Federal Communications Commission to Sandra L. Wagner, Vice
President-Federal Regulatory, SBC Telecommunications, Inc. (May
4, 2001), and Letter from David H. Solomon, Chief, Enforcement
Bureau to Sandra L. Wagner, Vice President-Federal Regulatory,
SBC Telecommunications, Inc. (July 26, 2001). See also SBC
Communications, Inc., Notice of Apparent Liability for Forfeiture
and Order, 16 FCC Rcd 19091 (2001).
5 Although the Commission's decisions granting SBC's section
271 applications refer to the SBC affiliates that applied for
section 271 approval as ``SWBT'' (the acronym for the SBC
affiliate Southwestern Bell Telephone, L.P.), throughout this
Consent Decree we will refer to SBC and its affiliates as
``SBC.''
6 47 U.S.C. §§ 251 and 271.
7 47 C.F.R. §§ 1.17 and 1.65.
8 See SBC Communications, Inc., Order, 14 FCC Rcd 12741 (1999)
( ``SBC/SNET Consent Decree''). The SBC/SNET Consent Decree
resolved an investigation into potential violations by SBC of
sections 271 and 272 of the Communications Act and section 1.65
of the Commission's rules, and potentially inaccurate statements
made by SBC employees, all in relation to SBC's application for
transfer of various authorizations from Southern New England
Telephone Company (``SNET'') to SBC. The SBC/SNET Consent Decree
required SBC to train those employees who have regular contact
with the Commission as part of their assigned duties in
Commission rules governing contacts with and representations to
the Commission.
9 See Letter from David H. Solomon, Chief, Enforcement Bureau,
Federal Communications Commission, to Sandra L. Wagner, Vice
President-Federal Regulatory, SBC Telecommunications, Inc. (May
4, 2001) (``Loop Qualification Letter of Inquiry''), and Letter
from David H. Solomon, Chief, Enforcement Bureau, to Sandra L.
Wagner, Vice President-Federal Regulatory, SBC
Telecommunications, Inc. (July 26, 2001) (``LMOS Letter of
Inquiry'').
10 47 U.S.C. § 271(d)(1). A LATA, or local access transport
area, defines the contiguous geographic area within which a Bell
Operating Company may provide service. See 47 U.S.C. § 153(25).
11 OSS includes the variety of systems, databases, and
personnel used by an incumbent LEC to provide service to its
customers. See Joint Application by SBC Communications, Inc.,
Southwestern Bell Tel. Co., and Southwestern Bell Commun. Serv.,
Inc. d/b/a Southwestern Bell Long Distance for Provision of In-
Region, InterLATA Services in Kansas and Oklahoma, CC Docket No.
00-217, Memorandum Opinion and Order, 16 FCC Rcd 6237, 6284,
para. 104 (2001), aff'd and remanded in part by Sprint
Communications Co. L.P. et al. v. FCC, 274 F.3d 549 (D.C. Cir.
2001).
12 See 47 U.S.C. § 271(c)(2)(B)(ii). See also Application by
Bell Atlantic New York for Authorization Under Section 271 of the
Communications Act To Provide In-Region, InterLATA Service in the
State of New York, CC Docket No. 99-295, Memorandum Opinion and
Order, 15 FCC Rcd 3953, at 3971, para. 44 (1999), aff'd by AT&T
Corp. v. FCC, 220 F.3d 607 (D.C. Cir. 2000); see also 47 U.S.C. §
271(c)(2)(B)(ii).
13 See § 271(d)(6)(A)(iii). ``[T]he grant of [an] application
merely closes a chapter. It does not end the story.''
Application by SBC Communications, Inc., Southwestern Bell Tel.
Co., and Southwestern Bell Commun. Serv., Inc. d/b/a Southwestern
Bell Long Distance Pursuant to Section 271 of the
Telecommunications Act of 1996 To In-Region, InterLATA Services
in Texas, CC Docket No. 00-65, Memorandum Opinion and Order, 15
FCC Rcd 18354, 18359, para. 7 (2000)..
14 See generally, 47 U.S.C. § 503(b).
15 See, e.g., 47 U.S.C. § 271(d)(6)(A)(ii).
16 In relevant part, section 1.17, 47 C.F.R. § 1.17,
states: ``. . .No applicant, permittee or licensee shall in
any response to Commission correspondence or inquiry or in
any application, pleading, report or any other written
statement submitted to the Commission, make any
misrepresentation or willful material omission bearing on
any matter within the jurisdiction of the Commission.''
17 In relevant part, section 1.65, 47 C.F.R. § 1.65, states:
Each applicant is responsible for the continuing accuracy
and completeness of information furnished in a pending
application or in Commission proceedings involving a pending
application. Whenever the information furnished in the
pending application is no longer substantially accurate and
complete in all significant respects, the applicant shall as
promptly as possible and in any event within 30 days, unless
good cause is shown, amend or request the amendment of his
application so as to furnish such additional or corrected
information as may be appropriate. Whenever there has been a
substantial change as to any other matter which may be of
decisional significance in a Commission proceeding involving
the pending application, the applicant shall as promptly as
possible and in any event within 30 days, unless good cause
is shown, submit a statement furnishing such additional or
corrected information as may be appropriate, which shall be
served upon parties of record in accordance with § 1.47. . .
For the purposes of this section, an application is
``pending'' before the Commission from the time it is
accepted for filing by the Commission until a Commission
grant or denial of the application is no longer subject to
reconsideration by the Commission or to review by any court.
18 See, e.g., 47 U.S.C. § 503(b).
19 See Loop Qualification Letter of Inquiry.
20 See SBC Communications Inc,, Notice of Apparent Liability
for Forfeiture and Order, 16 FCC Rcd 19091 (2001) (``NAL''). The
Commission premised SBC's apparent section 1.17 violation on
statements made in an affidavit signed by an SBC employee and
submitted by SBC with its April 6, 2001 report to the Enforcement
Bureau.
21 See Response of SBC Communications Inc. to Notice of
Apparent Liability for Forfeiture and Order, EB-01-IH-0339 (filed
Nov. 21, 2001).
22 See Comments of AT&T Corp. in Opposition to SBC
Communications Inc.'s Section 271 Application for Missouri, CC
Docket No. 01-88, (filed Apr. 24, 2001) and Letter from Richard
E. Young, Sidley Austin Brown & Wood to Magalie Roman Salas,
Secretary, Federal Communications Commission, CC Docket No. 01-
88, at 7 (filed May 24, 2001).
23 See LMOS Letter of Inquiry.
24 See SBC/SNET Consent Decree, 14 FCC Rcd 12741 (1999).
25 See NAL, 16 FCC Rcd at 19114, 19125, 19127-28.
26 47 U.S.C. §§ 208 and 271.
27 This Compliance Plan incorporates Section III: Definitions
from the Consent Decree.